General FAQs
The below frequently asked questions are only some of the many insurance questions we come across at Thunder Bay Insurance. We strongly encourage you to contact one of our insurance brokers to discuss more fully your insurance questions and needs. You can also visit the Property Insurance, Auto Insurance sections of our website for more information.
Why is the replacement cost on my building so high?
Replacement cost is a calculation estimating how much a contractor would charge an insurance company to rebuild the home in the event of a loss. This calculation has been estimated from the amount insurance companies have paid to replace or repair homes of equal size and quality. Replacement cost factors in the cost to remove all damaged material from the construction site resulting in the sizable cost of getting the property ready to be rebuilt. On top of that, insurance claims are always unexpected, forcing contractors to pay a higher cost in materials and labour than they would building a number of homes at one time as in a subdivision. Visit our Property Insurance and contact your broker for more information.
Who can drive my vehicle?
You can lend your vehicle to anyone with a valid driver’s licence* and your permission to drive the vehicle. Be aware, if you lend your car, you lend your insurance. Other drivers of your vehicle can seriously affect your insurance rates should a claim occur. If an individual does not have their own auto insurance coverage, your policy will be the sole provider of compensation. All licensed drivers in the household must be listed on your policy, shown to be listed on a policy, or be specifically excluded from driving the vehicles. So remember, if you lend your car to someone and that driver causes an accident, at fault or not, that accident is charged to your policy. It’s as though you were driving the vehicle yourself.
*To validate a driver’s license, you can call 1-900-565-6555 or visit the Driver License Check website at www.rus.mto.gov.on.ca/DLCheck/Scripts /OrderForm.asp (subject to a service fee).
What should my liability limit be?
We recommend a minimum liability limit of $2,000,000. This coverage protects you for your legal liability for bodily injury to others or damage to property of others arising out of your premises or your personal actions. It will pay for legitimate claims against you or other insured persons up to the limit of your coverage, and the cost of settling claims.
What can I do to reduce my insurance costs?
There are many discounts that can be applied to your insurance. Talk to your broker to make sure you are receiving all of the discounts you are eligible for. Additionally, you can decrease your premium by increasing your deductibles. Make certain that you are prepared to pay that increased deductible in the event of a loss. Speak to your broker to learn more about your various options with deductibles.
What should new drivers know about insurance?
There are many opportunities to save as a new driver. Driver’s education provides you with a starting rating of 3 which credits you with three years of driving experience. This will result in a lower premium. In addition, discounts are available for drivers who receive their G2 and G licences so make sure to keep your broker up-to-date on your driving status.
New drivers should also avoid distracted driving. Distracted driving can occur any time a driver’s attention is taken away from where they should be focusing their concentration — the driving task.
Driver distractions include: cell phone calls and texts, eating, drinking, changing a CD or fiddling with radio dials, talking to a passenger, experiencing emotional distress, personal grooming, and looking at billboards or even other vehicles on the road. Drive safely by keeping your eyes on the road, your hands on the wheel and an appropriate focus on your driving.
Visit http://www.caa.ca/driventodistraction/home.html for more information on distracted driving and what you can do to avoid it.
Should I insure my children on their own policy or add them to my policy?
It is often less expensive to insure your children under your policy if they are an occasional driver rather than the principal driver of a vehicle. If your child gets traffic tickets or has an accident your premium will go up as a result. It may be in your best interest if they are the principal driver for them to have their own policy.
If I am going on vacation and/or my dwelling is going to be vacant what should I do?
If you are going on vacation or leaving your dwelling vacant, you should make sure your dwelling is checked regularly for unforeseen circumstances. You should also make sure to speak to your broker to determine if your insurance needs to change, and should carefully review your policy wordings to ensure you keep your coverage active by meeting all insurance company requirements.
What does property insurance usually cover?
It depends on the type of property you are insuring, whether it is a home, condominium or apartment. If you own a house, your property insurance will cover the house itself and any detached structures (e.g. garages). You can choose to insure your house against most unexpected situations, or only against situations specified in your policy. Your property insurance will also cover your personal belongings which include: jewellery, artwork, furniture, computers, carpets and more. If you have a large amount of high-valued items you may need to purchase additional coverage to ensure you will be fully reimbursed. Talk to your broker to discuss your needs and learn about your options. Most property insurance policies also include third party liability if somebody is injured while on your property.
Does my policy cover all water losses?
In general, your policy is written to provide coverage for any sudden, accidental and unforeseen water damage losses. However there are some causes that may be excluded so make sure to review your policy with your broker.
Broad Water Damage may be purchased to protect you from sewer back-up losses. Contact your broker to see if you are eligible for this coverage.
How long does it take to get an insurance quote?
Thunder Bay Insurance is a strong advocate of our TRI™ – Total Review of Insurance which is our commitment to review current coverage, provide recommendations and explain the benefits. The comprehensive step-by-step process enables our team to achieve the status of Trusted Advisor for our clients. With this process in mind, the processing time of your TRI™ will range depending on the complexity of your needs.
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Claims FAQs
The below frequently asked questions are only some of the many insurance questions we come across at Thunder Bay Insurance. We strongly encourage you to contact one of our insurance brokers to discuss more fully your insurance questions and needs. You can also visit the Claims section of our website for more information.
What should I do if I have a claim?
You should report your claim immediately to our office or the after-hours claims service. All claims numbers can be found under our Claims section.
How long do I have to report the claim?
It is recommended that you notify your insurance company as soon as possible. The statute of limitations is one year on property losses.
When should I report a claim to my insurance company?
In the event of a loss, you should always contact your broker who will help you to ensure that all variables are considered and who will advise you on the proper action to take. Along with your broker you can decide whether or not to submit the claim to the insurance company.
Am I dealing locally or with a person form out of town when processing my claim?
Some claims services are local and some are based in cities outside of Thunder Bay; it depends on which company you are insured with. Your insurance broker, who acts as your trusted advisor in the event of a loss, acts as your advocate in dealing with all involved parties, local or not.
Can I have a cash settlement rather than replace the item(s)?
Yes, however a cash settlement is based on depreciated value and therefore is often less than the amount you would receive by replacing the item(s).
Does my deductible always apply?
Not always. When you are deemed “at fault,” regardless of how much at fault you are, your deductible will always apply. In cases where you are deemed not-at-fault, you will not be responsible for paying your deductible.
How long will it take to process my claim?
Your claim will be recorded immediately after you have reported it to our office or the after-hours claims service. In most cases your broker will contact the insurance company on your behalf and will always follow-up to ensure that the claim is being processed. You should be contacted by an adjuster no later than one business day after the claim. The time it takes from the reporting of the claim to the claim’s payout will depend on the complexity and extent of your claim.
How will claims affect the premium on my policy?
Often times when a claim is submitted, your insurance rates will increase to reflect the increase in risk that you now represent as a client. Depending on your policy, some insurance companies offer accident forgiveness for your first at fault traffic accident. With regards to property insurance, once a claim has been submitted you will lose your claims-free discount, automatically increasing your premium. In some cases, if you have two claims within a five year period you may not be able to renew with your current company.
Do I have to report a claim if I call to ask a question about an accident or situation?
We are your trusted advisors and will answer all of your questions and discuss your options with you. There are some cases in which we are required by law to report damages or accidents, such as when public property is damaged or when the damages of your accident exceed $1000. Where we are not required by law, you do not have to report the claim after seeking advice.
When do I have to report a traffic accident?
The Highway Traffic Act states that all motor vehicle collisions involving injury or death, where there is damage to highway property, and where the combined damage exceeds $1,000.00, must be reported to police. The type of motor vehicle collision you’re involved in will determine the appropriate response. The information in this response was found on the Thunder Bay Police website: www.thunderbay.ca/Police/FAQs.htm.
Your insurance policy states that you are required to report all accidents, regardless of the amount of damage or who is at fault. If you do not report your accident and the other driver does, their insurance company will automatically contact yours.
To report a traffic accident where the police are not required, contact the Collision Reporting Centre at (807) 345-1617. For more information visit their website at www.accsupport.com.
If I am in an accident, who’s policy pays for damages?
Whoever is considered “at fault” is responsible for paying for damages. Note: if you are charged with an offence, you will not necessarily be found at fault for insurance purposes. Similarly, if police don’t file charges, it doesn’t necessarily mean that the insurance companies investigating the circumstances of the accident will not find one or more of the drivers involved at fault. For example, if a vehicle was unable to stop on an icy road and rear-ended another, a police officer may say that neither of the drivers was at fault. In a case like this, the insurer would apply the rule stating that a vehicle which rear-ends another is at fault.
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Business FAQs
The below frequently asked questions are only some of the many insurance questions we come across at Thunder Bay Insurance. We strongly encourage you to contact one of our insurance brokers to discuss more fully your insurance questions and needs. You can also visit the Business Insurance section of our website for more information.
Why do I have to provide you with my receipts?
Business receipts for your gross annual income ultimately determine your liability premium. The higher your income, the higher your exposure, and therefore the higher your risk of a loss.
What is Business Interruption cover and why do I need it?
In the event of an insurable loss, Business Interruption coverage continues to pay your business expenses until you are able to resume normal operations. We highly recommend having your bookkeeper/accountant calculate the proper limit with you.
What is Boiler & Machinery coverage?
Boiler & Machinery coverage is another term for accidental equipment breakdown. This does not include regular maintenance costs. Some examples of equipment that this coverage could be used for are: heating and air conditioning units, computers and telephones, and freezers and refrigerators.
What is co-insurance?
Co-insurance is a penalty clause which insurance companies apply when you do not carry adequate limits of insurance on your property. For example, if you insured your building for $50,000 when it is actually worth $100,000 and the amount of your loss is $20,000 you would not receive the full amount of your claim. Instead you would be paid $10,000. The equation below demonstrates how this value is determined:
((Did insure for…)/(Should have insured for…))×Amount of Loss
($50,000/$100,000)×$20,000=$10,000
It is critical that policyholders review their building limits with their broker to ensure that the limit reflects the proper value.
Are my business tools covered under my homeowners insurance policy?
No. If you use your tools in your business operations you need to purchase a “tool floater” to cover them.
How long does it take to get an insurance quote?
Thunder Bay Insurance is a strong advocate of our TRI™ – Total Review of Insurance which is our commitment to review current coverage, provide recommendations and explain the benefits. The comprehensive step-by-step process enables our team to achieve the status of Trusted Advisor for our clients. With this process in mind, the processing time of your TRI™ will range depending on the complexity of your needs.
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